Green Human Resources for Green Product Innovation: The Moderating Role of Green Transformational Leadership

Environmental pressure and consumer demands have encouraged companies to implement more sustainable production and consumption practices. In this case, companies must consider consumer preferences for environmentally friendly products. Value co-creation theory suggests that the value creation process is a continuous interaction and co-creation of experiences between companies and customers (Liu & Wang, 2024). In addition, stakeholder theory also indicates that individual consumers are stakeholders of a company (Guerci et al., 2016). Drawing on these theories, companies need to respond to consumer demands to create green and sustainable products to remain relevant in the market, one of which is through investing in more sustainable human resource management practices, or Green Human Resource Management (GHRM) to support green product innovation. However, despite the intellectual resources accommodated in GHRM, transformation towards sustainability may not be achieved without change-oriented and environmentally-oriented leadership. In this case, green transformational leadership drives the success of a company's sustainability transition through GHRM (Luo et al., 2024). Keywords: GHRM, green transformational leadership, green product innovation, green product sales, financial performance.